Chemically modifying vegetable oils to produce an alternative to petroleum-based materials is one of the most important emerging industrial research areas today because of the adverse effects of petroleum products on the environment and the shortage of petroleum resources. Biolubricants, bioplasticizers, non-isocyanate polyurethanes, biofuel, coating materials, biocomposites, and other value-added chemicals can easily be produced by chemically modifying vegetable oils. This short review discusses using vegetable oils or their derivatives to prepare lubricants that are environmentally safe. Chemically modified vegetable oils are generally used as base fluids to formulate environmentally friendly lubricants. Reports of their application as sustainable additives have attracted special attention recently because of their enhanced multifunctional performances (single additives perform several functions, i.e., viscosity index improver, pour point depressant, antiwear products) and biodegradability compared with commercial additives. Here, we have reviewed the use of chemically modified vegetable oils as base fluids and additives to prepare a cost-effective and environmentally friendly lubricant composition.